The Daily Brief SEBI isn't a big fan of digital gold
Nov 12, 2025
Explore the concerns around SEBI's warning about digital gold and the hidden costs that come with it. Discover the stark differences between digital gold and regulated gold products like ETFs. Shift gears to the potential of coal gasification in India, including how it transforms coal into syngas. Learn about the environmental trade-offs and the industrial benefits of syngas production. Finally, delve into the government's strategies to encourage private investment in gasification amidst regulatory challenges.
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Digital Gold Looks Regulated But Isn’t
- Digital gold apps look like regulated products but operate outside SEBI's framework and lack systemic protections.
- That creates significant counterparty risk because holdings depend solely on private contracts and the issuing company's practices.
Prefer Regulated Gold ETFs
- Avoid assuming digital gold offers the same legal protections as gold ETFs or demat holdings without checking underlying custody and trustee arrangements.
- Prefer regulated gold ETFs for transparent pricing, custodianship, and depository safeguards.
Hidden Upfront Costs Erode Returns
- Buying digital gold immediately incurs 3% GST and platform spreads, often costing investors 5–6% up front.
- That means your purchase buys noticeably less physical exposure than the headline amount suggests.